Short Term Disability Insurance for Individuals
Are Two Insurance Policies Better Than One?
Most companies offer short term disability insurance to employees that vary in rate and amount, depending how long the employee has been with the company. Short term disability insurance is time-based and also commonly called sick leave.
It compensates and provides a percentage of the weekly income a disabled or incapacitated employee earns. It can last from a few weeks up to one year; and it is when the short term disability policy benefits run out that the long term disability insurance sets in. So if the company already provides insurance for you, do you think you still need to avail of a short term individual disability insurance?
Independent business owners, or those who are self-employed, are highly recommended to have individual disability insurance, since they are their own businesses and their absence would mean so much to the business. Employees, though already covered by insurance at work, may want to supplement it because, after some time, they realize a percentage of their salary still is only a part of what they can earn in full.
Supplementing with individual disability insurance can insure another ten to twenty percent of your salary with more benefits than you can possibly get with a company group plan.
Another good thing about individual disability insurance is it stays with you even if you change jobs. Your new company may still offer a group plan policy for you; but your investment even in the short term with individual disability insurance will not alter its benefits. It also gives you full rights to claim your reimbursements if the company fails to give it on time, unlike group policies which take so long to process.
The idea of supplementing your existing company plan with your own personal insurance may be expensive, but, in due time, you will reap the benefits of an almost-full salary without being taxed. Short term disability insurance is always offered on a post-tax basis — meaning you receive the disability benefits as a non-taxable income.
There are different benefits offered by insurance companies and, as an individual, you must know which policies and quotes work best for you and your profession or business. There are some benefits that provide a staple and intact base salary for you, others include incentive pay and most offer a tax-free reimbursement and overhead maintenance, as well as family financial protection.
In choosing the best short term individual disability insurance, do not let cheap premiums trick you into availing poor service and badly funded companies. The insurance company must have a good reputation of being financially stable, so that it can provide immediately when you need it most and that the customer service team is experienced and caring.
According to statistics, one out of five Americans will suffer from a long term disability or a short one, lasting from three months to a year, and there are many others already filing for bankruptcy due to a medical condition. Do not be complacent in letting your company handle your insurance policy because you may not be getting what you are paying for.
Company plans are still solely paid by volunteer employee policyholders and you may be paying for insurance that cannot help you immediately during your dire need. By investing in short term disability insurance for individuals, you double your financial security and receive the best benefits and services possible.
« Life, Health, & Disability Insurance Quotes
Private Short Term Disability Insurance »